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Zambia News Online - (19), 6/2/97

Zambia News Online - (19), 6/2/97

ZAMBIA NEWS ONLINE/ZAMBIA NEWS ONLINE/ZAMBIA NEWS ONLINE

Edition: #19 2 June 1997

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A fortnightly update of news from Zambia

ZAMBIA NEWS ONLINE is written by Zambian journalists in Zambia and brings you the news from their point of view. It is assembled and edited by South Africa Contact, the former anti-apartheid movement in Denmark, publishers of i'Afrika, a quarterly magazine concentrating on Southern Africa.

ZAMBIA NEWS ONLINE joins MALAWI NEWS ONLINE and TANZANIA NEWS ONLINE in providing up to date news from our established network of journalists in Southern Africa. These newsletters will be followed, in the very near future, by individual news updates from other countries in the region.

ZAMBIA NEWS ONLINE is brought to you through a co-operation between South Africa Contact and Inform, Denmark's leading alternative information network.

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In this edition:

Feature:

ZAMBIAN WORKERS IN CONSTANT FEAR OF JOB LOSSES

When the MMD government began implementing its privatisation programme in 1993 soon after coming into power, there was much anxiety among workers in parastatal companies. They feared for their jobs and the future. Four years on, those fears have come true for thousands of workers who have been retrenched and their companies closed down. For thousands more still working in parastatal companies the fear is still real despite government efforts and assurances to ease the impact of the privatistion programme. For the many parastatals still to be privatised,and with competition getting stiffer in virtually all sectors of the economy, it seems inevitable thatmany more will fold and many more workers will be made redundant.

Recently released statistics show that of the approximately 70 state owned enterprises, only 13 have in recent years been able to withstand the pressure of competition and declare some profit. Of the rest, most are on the way down, recording huge loses and as a consequence laying off workers. With government saying that each company should stand on its own financial feet, and with the economic environment getting stiffer every day, there seems no way out for most of the companies except to declare bancrupcy.

For many years, most of the parastatals depended on continued funding from the central government in line with the socialist principles of the then UNIP government. Profit making companies were compelled to sustain the operations of other companies, many of which were formed primarily to create employment. But since the coming of the MMD into power in 1991 each company has had to depend on its own resourses to survive. Inevitably many of them, like Zambia Airways the national airline and United Bus Company of Zambia the national passenger transporting firm, have had to be liquidated.

The Directorate of State Enterprises (DSE), which was formed to monitor the performance of the parastatal companies before being privatised, reports that the firms recorded a collective decline in profits by 90.3 per cent during the last financial year and that prospects for an improvement were bleak. DSE director Steven Mwamba notes that the poor performance of most of the firms was a reflection of the hostile economic environment in which they operated. He points out that interest rates are high and inflation is also high, competition is heavy, there is inadequate working capital and all this results in low capacity utilisation and, therefore, reduced output.

The manufacturing firms hit by 'unfair competition' especially from South Africa and Zimbabwe, suffered a severe blow affecting both parastatal and private companies. The sector recorded a pre-tax loss of about $US10 million with only a handful of firms making profits. Among the handful were a bicycle manufacturing company, a metal fabricating firm and an oxygen producing company which has since been privatised.

The manufacterers contend that the business playing field is not level. They point out that the cost of the mostly imported raw materials needed in manufacturing was high and attracted a high import duty and results in the end-product being priced much higher than imported finished products from countries like South Africa which subsidises some of its exports.

In the agriculture sector, the performance has been just as bad. This is despite the contention by economic experts that the agriculture sector is the solution for Zambia's economic ills. The United Milling Company went into liquidation, financial constraints forced Indeco Milling to sell some of its mills but it still made a loss. Production at firms like the Zambia Cashew Company and the Kawambwa Tea Company came to a virtual standstill with workers going for months without being paid their salaries with some eventually being laid off, often without benefits.

The negative results were also recorded in the communication sector in which Zambia Railways and Zampost, the postal service, recorded loses of about US$15 million and US$1 million, respectively. A positive result was, however, recorded at the Airports Corporation which made a modest and rare profit of about US$170,000.

While privatisation is being seen as the solution for most of the shaky companies, it is also being seen as the axe that will give the final chop to many workers in the mining sectors. Miners are worried that many of them, especially those in management positions, could lose their jobs when the various divisions of the giant conglomerate, Zambia Consolidated Copper Mines (ZCCM), are sold. This fear of job loses was heightened recently when a prospective buyer of one of the mines advertised several jobs in a South African newspaper. The Mine Workers Union of Zambia has warned that it will not tolerate any new company employing expatriates in positions Zambians can fill.

In a recent 'State of the Nation' address, President Chiluba asked for patience among Zambians. He said that the 'fruits of rebuilding the economy cannot be reaped overnight'. He did say, however, that the economic recovery plan was on course and in another five years the real benefits will begin to be felt.

For many workers, however, waiting that long could spell doom to them and their families as their only source of income is and has been the money earned through formal employment. Government has been encouraging retrenched workers to get into informal employment. For many Zambians, this has meant joining the already huge army of street vendors - not out of choice but more out of the desperation to survive.

1. MMD LEADERSHIP SILENCES EARLY PRESIDENTIAL CAMPAIGNS

With President Chiluba's second and final term of office ending in 2001, some senior party members are believed to have started their campaign within the party to win the required support needed to win the party presidency and eventually the republican seat.

However, after President Chiluba's recent warning that he would fire those campaigning for the presidency, several middle-level party members, suspected of being agents for the aspirants, have been suspended in Lusaka. Among leading contenders for the post are Vice-President Godfrey Miyanda, MMD National ZAMBIAN WORKERS IN CONSTANT FEAR OF JOB LOSSES

When the MMD government began implementing its privatisation programme in 1993 soon after coming into power, there was much anxiety among workers in parastatal companies. They feared for their jobs and the future. Four years on, those fears have come true for thousands of workers who have been retrenched and their companies closed down. For thousands more still working in parastatal companies the fear is still real despite government efforts and assurances to ease the impact of the privatisation programme. For the many parastatals still to be privatised, and with competition getting stiffer in virtually all sectors of the economy, it seems inevitable thatmany more will fold and many more workers will be made redundant.

Recently released statistics show that of the approximately 70 state owned enterprises, only 13 have in recent years been able to withstand the pressure of competition and declare some profit. Of the rest, most are on the way down, recording huge loses and as a consequence laying off workers. With government saying that each company should stand on its own financial feet, and with the economic environment getting stiffer every day, there seems no way out for most of the companies except to declare bankruptcy.

For many years, most of the parastatals depended on continued funding from the central government in line with the socialist principles of the then UNIP government. Profit making companies were compelled to sustain the operations of other companies, many of which were formed primarily to create employment. But since the coming of the MMD into power in 1991 each company has had to depend on its own resources to survive. Inevitably many of them, like Zambia Airways the national airline and United Bus Company of Zambia the national passenger transporting firm, have had to be liquidated.

The Directorate of State Enterprises (DSE), which was formed to monitor the performance of the parastatal companies before being privatised, reports that the firms recorded a collective decline in profits by 90.3 per cent during the last financial year and that prospects for an improvement were bleak. DSE director Steven Mwamba notes that the poor performance of most of the firms was a reflection of the hostile economic environment in which they operated. He points out that interest rates are high and inflation is also high, competition is heavy, there is inadequate working capital and all this results in low capacity utilisation and, therefore, reduced output.

The manufacturing firms hit by 'unfair competition' especially from South Africa and Zimbabwe, suffered a severe blow affecting both parastatal and private companies. The sector recorded a pre-tax loss of about $US10 million with only a handful of firms making profits. Among the handful were a bicycle manufacturing company, a metal fabricating firm and an oxygen producing company which has since been privatised.

The manufacturers contend that the business playing field is not level. They point out that the cost of the mostly imported raw materials needed in manufacturing was high and attracted a high import duty and results in the end-product being priced much higher than imported finished products from countries like South Africa which subsidises some of its exports.

In the agriculture sector, the performance has been just as bad. This is despite the contention by economic experts that the agriculture sector is the solution for Zambia's economic ills. The United Milling Company went into liquidation, financial constraints forcedSecretary, Michael Sata, Defence Minister Ben Mwila and Finance Minister Ronald Penza. So far, none of the contenders have declared official interest in the position.

2. a - LEADERS OF OPPOSITION PARTIES UNDER PRESSURE FROM OWN MEMBERS

Leaders of the main opposition parties in Zambia are facing mounting pressure from their respective party members who are demanding more active participation in politics. The latest round follows the recent decision by all opposition parties to boycott three parliamentary by-elections. The MMD, unopposed, retained all the seats.

While the UNIP leadership insists that there is no point in taking part in any elections when it does not agree with the electoral system, some members contend that it is better to take part in order to maintain political momentum. In the Zambia Democratic Congress the pressure on its president, Dean Mung'omba, is now coming not only from ordinary members but also from national executive committee members. The members would like the ZDC, which has two seats in the 150-seat parliament, to take part in forthcoming local government elections.

2. b - UNIP MEMBERS OBJECT TO KAUNDA'S CALL FOR DIALOGUE WITH THE MMD

UNIP president, Kenneth Kaunda, has called for renewed dialogue between the MMD and opposition parties in order to ease political tension in the country. However, while several other political parties, including the ruling MMD, agree with the call for dialogue, a pressure group within UNIP disagrees. The chairman of this group, Elton Phiri, says that UNIP should not rush into dialogue with the MMD when the "political playing field is not even".

Meanwhile, the Electoral Commission has called for suggestions on how to improve and expand the current Electoral Code of Conduct. The Commission's chairman, Judge Bobby Bwalya, says all stakeholders who feel that the current code was inadequate, should submit their proposal to the commission for consideration. 3. POLITICAL VIOLENCE RESURFACES

Physical clashes between members of rival political parties have resurfaced in Lusaka where several people have sustained injuries during confrontations. MMD and UNIP fought a fists and stones battle recently after a court hearing of the on-going Supreme Court petition against President Chiluba by some opposition parties. Police quelled the fight but not before several members of both parties were injured. A few days later, an MMD constituency leader in Lusaka was beaten by UNIP members as he passed by the UNIP headquarters wearing an MMD T-shirt.

Publicity secretary for UNIP, Bwendo Mulengela, says that the party would pursue a non-violent path but would not hesitate to hit back if provoked. He also accused police of bias towards UNIP members whenever the party is involved in a physical confrontation with MMD members.

4. a - PARLIAMENTARY ELECTIONS LOSERS BEGIN TO PETITION RESULTS

Some parliamentary contesters of last year's elections have began to file petitions in the High Court, seeking nullification of the results. Prominent among the latest petitioners is Dr Guy Scott, the Lima Party co-president, who lost the seat to the MMD's Gibson Nkausu.

Allegations of the MMD rigging the elections are being exposed with regular frequency in the on-going Supreme Court petition against President Chiluba whom some opposition parties contend did not qualify to contest the elections.

4. b - OPPOSITION PARTIES ASKED TO WITHDREW PETITION AGAINST CHILUBA

A prominent clergyman in Lusaka has called on opposition parties to withdraw their Supreme court petition concerning President Chiluba's nationality. Church of God superintendent, Bishop John Mambo, says that the petition is a waste of time and money. He also says that it is creating political intolerance and diverting the government's attention from more important issues.

Bishop Mambo said that the presidency must be respected, pointing out that President Chiluba has been known for a long time and no one should question his nationality. He also said that no one should question former president Kenneth Kaunda's nationality, considering that he was Zambia's head of state for 27 years.

5. ZAIREANS IN ZAMBIA CELEBRATE BIRTH OF CONGO REPUBLIC

News of Laurent Kabila's forces capturing the Zairean capital Kinshasa was greeted by wide-spread jubilation in Zambia's major towns where hundreds of Zaireans live. The mood of jubilation was reportedly similar even at the Zairean Embassy where workers had felt the tension in recent weeks.

Pressure is now mounting on United Nations High Commission for Refugees officials by Zairean refugees who are demanding that they be promptly repatriated to their home country which has been renamed The Democratic Republic of Congo. Several hundred refugees are scattered at various camps in Zambia. Zambia is also holding some 800 soldiers of the fallen Mobuto regime in some camps.

6. STUDENTS WORRIED BY DELAYED REOPENING OF UNIVERSITY OF ZAMBIA

Students and academics have condemned government for the delay in reopening the University of Zambia, which was closed two months ago following student unrest. Students contend that there is no justification for keeping the institution closed when the administration has indicated that it was ready to reopen.

However, education minister, Syamukayumbu Syamujaye, says that the University will remain closed until a Commission of Inquiry probing causes of student unrest at the institution completes its investigations and makes its recommendations to President Chiluba.

7. LUSAKA BRINGS CHOLERA UNDER CONTROL

Medical authorities in Lusaka have brought the deadly cholera epidemic in the capital under control. The waterborne disease each year claims scores of lives around the country especially during the rain season.

With the rainy season now over, the numbers falling prey to the disease has reduced and all but one of the five cholera centres in Lusaka has been closed.

8. ZAMBIA'S POVERTY LEVELS STILL HIGH

Over 90 per cent of Zambia's nine million citizens are living in poverty. According to results of a survey carried out by the Central Statistical Office, 92 per cent of Zambians consider themselves poor and living below basic standards.

9. TRADITIONAL CEREMONY FLOPS AGAIN

One of Zambia's oldest and most prestigious traditional ceremonies, the Kuomboka, has would appear to have flopped again this year. The annual ceremony was to have been held by April. The ceremony involves the moving of the Paramount Chief of the Lozi people, the dominant tribe of western Zambia, amid pomp and splendour, by a traditional boat from his summer palace to his winter palace .

In recent years the ceremony, which attracts hundreds of both local and foreign tourists, could not be held because of poor rains which failed to flood the river on which the ceremony takes place. This season the rains have been good and the river flooded but the Royal establishment has kept everyone guessing as to why the ceremony is not being held.

10. SUSPENSION OF FOOTBALL ASSOCIATION OF ZAMBIA PRESIDENT CAUSES CONCERN

Several soccer administrators have expressed concern and disgust at the suspension, for alleged insubordination, of the Football Association of Zambia president Michael Chiti, by the Sports Council of Zambia.

Chiti was suspended for three months when he said the Football Association of Zambia would not hold its elections before June 7 as directed by the Sports Minister Samuel Miyanda. The suspension effectively disqualifies Chiti from contesting the elections which are now due on June 28. Observers note that the suspension was tantamount to direct government intervention in the affairs of running soccer in the country, contrary to regulations of FIFA, the world soccer governing body.

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From: AfricaNN@inform-bbs.dk (Africa_news Network) Date: Mon, 09 Jun 1997 15:47:38 +0200 Subject: Zambia News Online #19 Message-ID: <1262350302.32437074@inform-bbs.dk>

Editor: Ali B. Ali-Dinar

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